Hello, Future Grant Management Guru! If you're offering grants and looking for that 'how' in managing them effectively, a grant management system might just do the trick. Let's dive into what a GMS is, how it works, and why it could be a game-changer for your organization.
A good grant management system should be available to aid the organization in managing every stage involved in the life cycle of grants. Beginning from the initial submission and application review to disbursement and reporting of funds, a GMS could make things much more efficient and lucid in process. On the whole, GMS will help organizations like grantmaking entities, non-profits, educational institutions, and government agencies to bring in transparency into the process by streamlining grant management and reducing the administrative burden.
Grant management systems are put in place to meet the management of the grant process in its entirety. In a nutshell, an effectively designed GMS provides centralization and stakeholders at each and every level have the capacity to process the needed information appropriate to his or her role or responsibility in best specified, more effective ways. Here are some key processes a GMS has to perform:
The process starts with the application stage. A GMS enables an organization to develop and distribute the grant application using electronic forms via a grantee portal. Grantseekers will have a chance to fill in the Application online. This will be very useful since it will avoid omission of very important content. E.g., an applicant organizes a nonprofit organization applying for money to sponsor running a community project by including necessary documents with all the required information. This reduces inefficiency in the process. A GMS would facilitate the organization by developing and posting forms for both donations received and grant applications being submitted electronically. Here, an individual applies for a grant online and easily sends one, ensuring not a single information pertaining to the application is ignored.
After submission, the GMS specifies that applications should be reviewed and approved. Governance in view, the GMS supports the process of review and approval. Individual reviewers have the chance to log in an online environment where he/she can view applications, assign scores against predeterminate criteria, and even make comments. This ensures that each application has the same kind of information between every individual reviewer. Accordingly, a decision made is therefore consistent and fair. It uses an interactive scheme through which a reviewer can leave many comments, which then may be tracked in the decisions themselves. This has the benefits of making the review process both highly transparent and more efficient.
The disbursement of funds by the management is supported by the GMS in the last stage, after approving all the applications. It includes fiscal monitoring from the onset in relation to the utilization of the fund, making a disbursement plan schedule, and finally, the grant verification for whom the people will receive the fund. Automating the payment processes and ensuring all grant-related parties are notified streamline the financial management side of things. For example, the government funding agency, working through the GMS, might be designed to pragmatically arrange for the disbursement of funding successively as projects reach predetermined stages for disbursement of funds. All transactions are surveilled in the system so, therefore, all activities create clear audit trails.
Grant management is not just about the disbursement of funds.
Grant management is something that happens over and above even when funds have already been deployed; implementation of the myriad projects receiving funds can/should be traced back against the terms and conditions for compliance. In following such a process, organizations are able to facilitate complete reporting to ensure the maintenance of the due reporting of activities, financials, and resultant factors of the grants. Transparency plays a key role in ensuring that organizations are held accountable, and this aspect underlies dаtа-driven dеcisiоn-mаking. For example, a public chаrity thаt funds а hеаlth campaign might need GMS to track project progress, compile grantee periodic reports, and produce reports of impact.
There are key benefits associated with having a grant management system in an organization. Some of the key benefits are as follow:
One of the key benefits is how it makes an individual's life so much easier by taking away the time and energy that was previously going into grant management, primarily by the staff. This saves a lot of time, and shifts energies are shifted to engaging in other strategic activities. A lot of other processes related to the fund management system are also expedited, such as review of applications and disbursement of funds. For instance, a GMS, according to the Technology Affinity Group, can save at least 30% in administrative time.
Essentially, a GMS is going to establish maximum openness with a clear trail of transactions for auditing. Most importantly, it equates accountability with regard not only to stakeholders such as donors, board members, and regulatory entities, but also looks inwards from the outside. Advanced reporting also greatly equips an organization with the ability to quantify its impact for making greater mission-based decisions around future funding. An example is that the private foundation will add GMS in creating detailed reports regarding grant distributions and project outcomes, which guarantees them of their value concerning transparency and accountability.
Grant management typically involves the following major stakeholders: grantors, applicants, reviewers, and financial management. A GMS will provide one place to bring all stakeholders in so they may access the information required and, in turn, foster as much brewing of communication and collaboration. Improved transparency can help improve outcomes on projects that funding arrives at. This means that a large international not-for-profit organization may have management located in different parts of the world and may need to coordinate efforts with local stakeholders through the GMS. In this regard, it can thus have all stakeholders at its disposal in real-time for project information and can collaborate easily.
Other significant elements of grant management include compliance with the terms, conditions, and regulations under which grants are awarded. That is to say, the provisions of GMS bring monitoring, reporting, and documentation tools that ensure the needs of the various compliance aspects are generated, while possibly minimizing the risks of penalties in case of non-compliance. With a grant management system in place, an organization's compliance needs can be checked automatically to generate the reports required; hence it diminishes the possibility of mistakes and non-compliance.
A grant management system comes in real handy and has the following benefits for organizations:
Government agencies have a large volume of grants on hand most of the time and need to conform to very stringent regulatory requirements. A GMS will facilitate automation and support in this work regarding compliance and transparency of spending public funds.
Public charities depend on grants to fund the activities and towards these projects. The GMS software supports organizations of this nature by submitting to the best of priority, hence keeping control and easy tracking of results realized through the evolving processes to ensure realization of their impacts.
Private foundations operationalize by advancing grant funding for particular causes or projects. The GMS supports the whole process, from applications received up to disbursements, with an eye to ensuring that the use of money shall be made prudent and efficient.
In the challenging and complex environment of grant management today, a GMS is a critical enabler meant to allow organizations to fully engage in process optimization, transparency promotion, and improved collaboration. A GMS will help service organizations execute the huge effort involved in providing for the diversified agendum portfolio through automation of such administrative tasks and functionality regarding monitoring and reporting. Ensuing from the strong functions in managing grants, this will, therefore, increase the capability for ways to increase outcomes.
Looking to make the process of managing grants more effective? Schedule a free intro call today and get concise details regarding how our brand new grant management system can work for you.
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